Ukraine has received hundreds of millions from the World Bank: what will the money be spent on?
2 April 21:19
Ukraine will receive more than $432 million in funding from the World Bank to restore road infrastructure that has been severely damaged by the full-scale war. This was reported by "Komersant Ukrainian" with reference to the website of the Ministry of Communities and Territories Development of Ukraine.
The agreement on the provision of funds was signed by Vice Prime Minister of Communities and Territories Development Oleksiy Kuleba and World Bank Regional Director for Eastern Europe Bob Som. The project will be implemented in 2025-2028.
Funding structure
The financing includes $422 million in loans and $10 million in a grant that will not need to be repaid. This is a comprehensive program that covers not only physical rehabilitation of roads, but also modernization of management, strengthening of institutional capacity and reform of the road sector.
The funds will be distributed as follows:
- $270.5 million will be allocated for repairs and capital works on roads and bridges, maintenance of facilities, design and technical supervision;
- $90 million to reform the transportation system, including updating the regulatory framework, traffic management system and improving road safety;
- $39 million will be spent on the installation of temporary emergency modular bridges, which will allow for the prompt restoration of key routes in the destroyed regions;
- $10 million will be allocated for technical assistance and effective project management.
Implementation and monitoring
The program will be coordinated by the State Agency for the Restoration and Development of Infrastructure of Ukraine. The project envisages a transparent monitoring system, the use of international reporting standards, and regular reconciliation of goals and expenditures with World Bank partners. It is expected that the first tranche of funds will be received by the end of April 2025, which will allow urgent work to begin in priority regions.
The government estimates that the fighting has destroyed or damaged more than 30% of state roads and bridges, about 11% of local roads and 17% of municipal infrastructure. The total losses in the transportation sector are estimated at tens of billions of dollars, and these investments should be the first major step towards full recovery.
Strategic importance
Oleksiy Kuleba emphasized that these funds are vital for maintaining Ukraine’s logistical stability, especially in times of war, when roads serve as key arteries for military supplies, evacuation of the population, transportation of humanitarian goods and export of goods.
He also added that the World Bank’s support is not only financial but also strategic cooperation that will allow implementing the best international practices in the field of transport, increasing transparency in road construction and attracting additional investments.
Prospects
This project will be part of a broader post-war reconstruction initiative covering infrastructure, energy, logistics, and social facilities. It also lays the groundwork for further decentralization of road management, transferring some functions to communities, and stimulating regional development.
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